Americans are facing a spike in car repossessions, with a 23% increase reported in July 2024 compared to the previous year, and a 14% rise from pre-pandemic levels in 2019. This surge is attributed to the high car loan interest rates, which have made monthly payments more burdensome. Repossessions usually occur when individuals fall behind on payments by two to three months. The car market has also encountered various challenges, from declining prices at the year's start to a significant cyberattack in June. However, there has been a slight uptick in wholesale used-vehicle prices. To avoid delinquency, borrowers can work with their lenders to find solutions, consider refinancing for better terms, or sell their cars to pay off debt. MyAutoLoan offers a platform to compare loan rates without hurting your credit score. CNBC Select provides comprehensive consumer advice to help readers make informed financial decisions.
Read the full article here.